CEAT Gears Up: A ₹4,500 Crore Bet on the Future of Indian Roads

CEAT has announced a major investment of over ₹4,500 crore to significantly expand production capacity at its Chennai plant, increasing output from 24,000 tyres per day to 40,000 tyres per day by September 2027.

The expansion will be carried out in phases, with capacity first being scaled up to 30,000 tyres per day. The focus will be on manufacturing tyres for both electric vehicles (EVs) and internal combustion engine (ICE) vehicles. Currently, EV tyres account for less than five percent of CEAT’s revenue, primarily due to its limited presence in the replacement segment.

In parallel, the company is also expanding its Nagpur facility. Production of two-wheeler tyres there will be increased from 80,000 to one lakh tyres per day. Additionally, capacity for truck and bus radial tyres will be scaled up from 1,500 to 2,000 tyres per day by Q2 FY27, and further to 3,000 tyres per day by Q4 FY28.

For the current financial year, CEAT has allocated over ₹1,070 crore towards capital expenditure. The company also reported strong financial performance, with consolidated net profit rising 145 percent year-on-year in Q4 FY26, supported by stable raw material costs and improved margins.

News by Rahul Yelligetti.